“…In this paper, we take a step towards developing a set of empirical tools to identify the key policy options and to test their links to improved 1 These 'indicator' efforts include: the Environmental Sustainability Index developed by the Yale Center for Environmental Law and Policy and Columbia University's Center for International Earth Science Information Network in collaboration with the World Economic Forum (WEF, 2001;Esty et al, 2005); the Living Planet Campaign sponsored by the World Wildlife Fund (Ricketts, 1999); the 'Weight of Nations' study conducted by the World Resources Institute with partners in Germany, Austria, the Netherlands, and Japan (Hammond et al, 1995); initiatives by the Organization for Economic Cooperation andDevelopment (1993, 1998) and the UN Commission on Sustainable Development (1996); the International Institute for Sustainable Development (Bossel, 1999); the informal 'Consultative Group on Sustainable Development Indicators' (International Institute for Sustainable Development, 1999); the UN Environment Programme (Bakkes et al, 1994); the European Union (Eurostat, 1999); the World Business Council for Sustainable Development (1998Development ( , 1999 (Verfaille and Bidwell, 2000); and the Boston-based CERES group (1997) as well as a number of national sustainable development councils and projects. A few studies have begun to analyze the links between corporate environmental performance and corporate profitability, most notably the corporate environmental rankings done by INNOVEST (Dixon, 2002) and by the Dow Jones Sustainability Index (2000).…”